Dr. Karl Laryea
State security agencies’ continued refusal to procure footwear from DIHOC Footwear Division Limited, popularly known as the Kumasi Shoe Factory, is affecting the operations and expansion plans of the company, management has said.
According to the Board Chair, Dr. Karl Laryea, repeated efforts to engage the heads of the various security agencies have failed, despite the government’s directives ordering them to stop importing footwear and buy locally from the factory.
“We have formally written twice to the agencies since the directive was issued and made repeated attempts to engage them, but we have received no response,” Dr. Laryea said in an interview with the media in Accra.
He said until the government enforces its own directives, the agencies will continue importing footwear from countries such as India, China, and the United Kingdom.
“One thing is to tell them to go and buy,” he said, and added, “The second thing is to enforce that order.”
Background
In 2014, then President John Mahama directed all state agencies to procure their footwear from the Kumasi Shoe Factory, which is partly state owned. The directive, however, was never enforced.
The agencies include the Ghana Police Service, Ghana National Fire Service (GNFS), Ghana Prisons Service, Ghana Immigration Service (GIS), the National Disaster Management Organisation (NADMO), and the National Service Authority (NSA).
Last year, the Minister for the Interior, Muntaka Mohammed-Mubarak, again directed security agencies to stop importing footwear and procure locally from the factory. According to Dr. Laryea, none of the agencies have complied.
He said the agencies have also refused to provide their size specifications, known as size rolls, which are required for production. Instead, they have asked the factory to mass produce footwear without confirmed sizing and promised to purchase later.
“If we produce and they come with different sizes, it becomes another excuse to buy from outside,” he said. “They do not want to buy. That is why they refuse to give their size rolls.”
The factory currently operates at about eight percent of its installed capacity of 700,000 pairs of security boots and shoes per year.
24-Hour Economy
Asked about the company’s readiness to take advantage of the government’s 24-Hour Economy policy, Dr. Laryea said the factory could create about 1,500 new jobs within months, but remains largely idle as security agencies continue to import footwear.
The factory, now operating with just 41 workers, has purchased four new assembly lines expected to arrive in March 2026 and is refurbishing existing machinery to support round the clock production.
Dr. Laryea said more than €1m has been invested in new machinery, with additional funds used to refurbish older equipment.
He said the factory is capable of producing between 10 million and 15 million pairs of school sandals annually, as well as more than 700,000 pairs of assorted security boots and shoes each year.
New Proposal
Dr. Laryea suggested that government could enforce compliance by paying for footwear procurement budgets directly to the factory, removing the discretion currently exercised by the various agencies.
“Until that happens, we will continue to struggle to get them on board, and our plans to take advantage of the 24-Hour Economy will be delayed,” he said.
A Daily Guide Report